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MEPs welcomed the EU Commission proposal for a common consolidated corporate tax base (CCCTB) in a debate with Commissioner Pierre Moscovici on Tuesday evening.

Most MEPs said the proposal is an important step in the right direction, even though some would have preferred the turnover threshold to be lower than the proposed €750 million. Some also said the common tax base should go hand in hand with a minimum tax rate, which is not included in the proposal.

Several MEPs said the current corporate tax system is unjust, ”as multinationals are moving their profits where taxes are lowest, whereas the tax authorities in our countries are going after individuals and businesses that cannot go abroad easily.” Some expressed concerns about the effects of consolidation on smaller countries.

Commissioner Pierre Moscovici said that with the rebooted CCCTB proposal “we are addressing the concerns of both businesses and citizens in one fell swoop. (...) At the same time, we need to drive forward our fight against tax avoidance, which is delivering real change. Finance ministers should look at this ambitious and timely package afresh, because it will create a robust tax system fit for the 21st century.”

Watch the whole debate here